Bulgaria Urged to Tread Carefully Toward Euro Adoption

The Bulgarian government and National Bank should closely monitor the country's economic activity as it moves toward eurozone membership, according to a new report by the Bulgarian Council for Economic Analyses (CEA), CE Report quotes BTA

Authored by economist Plamen Nenov, the analysis compares Bulgaria’s path with that of Slovenia and Croatia, both of which experienced faster growth in GDP, employment, and investment after adopting the euro. However, Croatia also faced moderate inflation, prompting the report to recommend targeted support for vulnerable groups such as pensioners if similar pressures arise in Bulgaria.

The CEA suggests a more conservative fiscal approach and stricter macroprudential policies to manage credit growth. It also sees Bulgaria’s euro adoption as a chance to enhance financial development, including boosting the appeal of the Bulgarian Stock Exchange to investors.

While the findings do not establish a direct causal link, they highlight important trends that should inform Bulgaria’s public debate on joining the euro.